hello
i was wondering how you do your taxes at the end of the year for the daycare? And about how much do you end up owing?
hello
i was wondering how you do your taxes at the end of the year for the daycare? And about how much do you end up owing?
Best advice I could give to anyone: Go to an accountant that does taxes. They can answer any and all of your questions.
Go to the revenue canada website and there is a booklet about the things that you can claim. Keep all receipts for everything throughout the year and then at the end of the year you can sort out which ones you can claim and which ones you can't. If this is your first year there will be a lot of startup costs for you such as equipment meaning for at least this year there is a very good chance you won't owe anything in taxes or at least very little other than your contribution to canada pension.
If this is your first year, I would absolutely see a "professional". It will be more expensive, but make sure you ask a lot of questions about what can and cannot be claimed and how things need to be submitted and organized. That way, you may feel comfortable enough to do it next year for yourself.
KEEP ALL OF YOUR RECEIPTS!!!! I cannot stress this enough. My husband and I have been self employed for years, although this is my first year doing the dayhome on my taxes. I have only been open for a little over a year, not that I was cheating before, lol! If you are going to write something off (and as a provider, you can write off food, toys purchased, gifts for birthdays and holidays, craft supplies, a portion of your housing cost, power, gas, water, etc, the list goes on!) you NEED to have a paper copy for proof.
Get an accountant - a good one! I have NEVER paid more than just CPP (which averages between $300-400) any given year. And the reason is because I have a very good accountant. The $150 it will cost you to pay a good accountant is honestly worth it - he/she can literally save you thousands of dollars.
I agree...get an accountant to help you do it and keep all receipts. I think I paid about $650 in CPP and a small amount of tax. Most of it was CPP.
Great advice--get an accountant. As my accountant told me every year there are new rules and regulations that pass over his desk. You will never know all the loop holes and regs. without someone's help. Save all your receipts, food, outtings, equipment/supplies, maintenance (dwelling and daycare), and remember you are allowed to claim a percentage of your dwelling costs (mortgage/rent, insurance, car insurance, etc) depending on the square footage that you use for the daycare.
Cheers.
Just thought I would add to this (and I still say go to an accountant, at least until you are totally comfortable with all the rules and regulations in order to do it yourself!):
I am just doing my taxes now (please don't judge me, lol!!) and found the Canada Revenue Agency site quite helpful.
Go to http://cra-arc.gc.ca and type "home daycare" into the search parameters. There is info on what you can claim, and how, proper receipt distribution (yes, our SIN number needs to be on there, ugh), and all sorts of other stuff.
Hope that helps!!!
If you have a local childcare association or can hook up with one nearby they probably offer a tax workshop for caregivers that will either be presented by an accountant, someone from revenue canada or by a seasoned caregiver that does their own taxes. Once you have made a list of all of the things you can deduct it really isn't that bad to do it yourself. I found by the time I organized everything to send to the accountant the end of the month it was just as easy to input the numbers myself and then add them up at the end of the year. Use of home and meals is simply a formula you apply to your totals so again, all year you just save receipts and add them up.